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Tous les autres exemplaires originaux sont fiim^s en commen9ant par la premiere page qui comporte une empreinte d'impression ou d'illustration et en terminant par la derniAre page qui comporte une telle empreinte. Un des symboles suivants apparaTtra sur la dernidre image de cheque microfiche, selon le cas: le symbols — ► signifie "A SUIVRE ", le symbols V signifie "FIN". Les cartes, planches, tableaux, etc., peuvent dtre film6s d des taux de reduction diffdrents. Lorsque le document est trop grand pour dtre reproduit en un seul cliche, il est fiimd d partir de I'angle sup6rieur gauche, de gauche A droite, et de haut en bas, en prenant le nombre d'images nAcessaire. Les diagrammes suivants illustrent la methods. t 2 3 32X 1 2 3 4 5 6 I I • POPULAR CONTROL OF THE LIQUOR TRAFFIC BY E. R. L GOULD Lecturer on Sorial Economics and Statistics, Johns Hopkins University PRESS OF THK !• RIEDKN VVALD CO. BALTIMORE 189s 50727 I . ' / I Copyright by the Author, 1895. 1 H < CONTENTS. Introduction 5 Chapter I. — Legal Basis of the Scandinaviaii System, 9 CiiAi'TER II. — Results of the Scandinavian System . . 34 Chapter III. — The Company System the Best Method of Control 70 Index loi INTRODUCTION. A wise control of the liquor traffic is one of the most pressing social problems of the age. Immoderate drinking is universally recognized as a leading factor in crime, pauperism, and a host of moral evils. Its economic significance is by no means so clearly under- stood. The annual drink bill of the United Kingdom approaches $700,000,000. In the United States not far from $1,000,000,000 are spent evdy year in alco- holic indulgence. In Germany, Austria and France the consumption of both spirituous and malt beverages is progressing at a dangerous pace. Belgium to-day has a liquor-shop for every thirty-nine inhabitants — a situation almost justifying the remark of Quirini, a Venetian envoy in 1505, that there liquor replaces water as the fourth cosmic element. The danger resident in these huge national liquor bills reaches beyond misery and moral degradation. Civilization itself is menaced by the growing economic waste. If it be true — and there seems to be a general opinion to that effect — that excesses are less frequent now than formerly amongst the upper classes, the burden must be falling chiefly upon those who are rela- tively least ible to support it. Certainly the family budget of the wage-earner is not so flexible that liberal expenditures for drink may be made with impunity. So delicately adjusted is the balance that the status of a new generation is largely determined by the quan- tity of liquor the fathers consume. Let all interested IN'TRODUCTION'. in tlic wcllbciiij^ ol" democracy rcineml)cr this tunda- montal fact. In tlie course of official experience I liave had occa- sion to investigate the social condition of several thousand workint^nien's families in Europe and the United States. One result of these pbservations shows that had alcoholic drinks been entirely abjured, each family, on the average, mit»ht have added two more rooms to its habitation. Abstinence consistently fol- lowed by industrial operatives over a period of years would have created a fund sufficient to purchase a home and to appreciably elevate the standard of life. As it is, saloonkeepers, if the figures are representa- tive, receive from this element of the population in five leading countries of the world three-fifths as much as landlords. The liquor interest in recent years has grown to be a factor of considerable political importance. Espe- cially in American cities has its baneful influence been felt. Should the representatives of the traffic gain still greater prestige, as they surely will if not checked, civic life will be corrupted to the roots. Entire disso- ciation is the only safeguard. Few people will deny that the liquor traffic presents grave public dangers. Yet there is wide divergence of views regarding proper methods of control. A most exemplary body of citizens would like to see radical repression attempted by law. A still larger contingent are partisans of a liberty so broad as to be anarchic. Between these two stand the great masses of the people, not committed to any particular doc- trines, well enough disposed, perhaps, but failing to appreciate the urgency of action. They profess them- selves disgusted with fanaticism, while apprehensive INTRODUCTION. i uf the cuasL'(iiicncc.s ol present licensinj^ methods. Is not this the class whicli esi)ecially needs to l)e awak- ened, informed, and rallied in support of a rational r6i>ime? They constitute the majority — in Anj^lo- Saxon countries, at all events — and on them rests the responsibility of initiative. The writer has watched with sympathetic interest the growth of English sentiment in favor of rational temper- ance reform. It has afforded him unbounded pleasure to note the formation of the "Public-house Reform Association." Under the able leadeiship which the movement already commands, more comprehensive action than has hitherto characterized English policy should take place. The present volume has been pre- pared with the purpose of aiding the association in its campaign of education. I esteem it a privilege to help, however humbly, in this good work, and I wish to acknowledge my obligation to that indefatigable worker, the Lord Bishop ofChester, for the opportunity. I have also hoped by this volume, issued, with some verbal changes, in the United States, to further like work on this side of the ocean, which Massachusetts, under the leadership c ' public-spirited temperance reformers, is initiating. Over two years ago the United States Department of Labor sent me to Sweden and Norway, for the purpose of studying and reporting upon the methods of controlling the liquor traffic adopted by those countries. I went there absolutely without prejudice of any sort ; I came away a convert to the system. The testimony of facts and the object-lessons afforded on every hand are conclusive enough to make one feel that the Scandinavian method, as part of a local- option system, is the only really practical means 8 INTRODUCTION. of dealinj; with the liquor evil in this generation. This opinion is fortified by knowledg:e and observation of other systems, gained from nearly five years' exper- ience as an investigator of social problems in Great Britain and on the continent of Europe. It is far in advance, too, of any method which has been tried in populous centres of the United States. I do not regard the Scandinavian plan as perfect, but I do believe it to contain the " promise and the potency " of higher things. It is a measure of progressive reform, sound in principle, operating harmoniously with well-defined laws of social advance, and is easily adaptable to English and American conditions. Its trial will do more than anything else yet suggested to mitigate an intolerable social curse. POPULAR CONTROL OI' THE LIOUOR rRAFMC. CHAPTER I. I.EGAL BASIS OF THE SCANDINAVIAN SYSTEM. In Norway the right to distil is granted to citizens living in towns, and to owners and occupiers of land in the country upon which taxes are paid. In Sweden the payment of a tax on ground owned or leased con- fers this privilege. There are exceptions in both countries, which, generally speaking, cover the judi- ciary, clergy, municipal, military, police and fiscal officers. None of these may engage in the manufac- ture of spirits. Distilling apparatus in Norway must have a minimum capacity of twenty-five gallons; no kindred restriction prevails in the sister kingdom. Distilling in both countries is conducted underlicenses granted by the provincial governors, who are appointees of the crown. It may be carried on in Norway during ^nine and a half months, and in Sweden during eight ° months of the year. A tax is levied in Norway every time any distilling is done, counting fifteen days as a minimum time of operation, and 5065 gallons as the assessed production. This provision is aimed at domestic distilling, and is designed to concentrate the business in a few hands. In Sweden the minimum production for the total period of eight months is fixed 10 xIE LIOUOR TRAFFIC. at 2113 gallons. Th ordinary revenue tax is 50 cents per gallon, but a supplemental excise of 10 cents a gallon is assessed whenever the daily product is less than 132 gallons or exceeds 1320 gallons. The gen- eral object of these regulations is to make distilling an industry instead of a domestic pursuit, as it formerly was. Their effect has been to notably diminish the number of manufactories. In Norway only twenty-one distilleries are in operation at the present time. The minimum quantity which distillers may sell at one time is now fixed at 66 gallons in both Norwegian and Swedish law. A sharp distinction is drawn in both countries be- tween the sale of spirituous liquors and of wine and malt beverages. Historically there is a reason for this. When temperance agitation first began, effort was directed solely against the ?buse of spirits, and it was considered distinctly a temperance measureto advo- cate wine and beer as substitutes. Naturally, since public agitation concerned itself so much with the one, the law has been uniquely occupied therewith. Now, however, the encouragement of wine and beer drinking is iir- part of the temperance propaganda, and the ettorts of teetotalers and moderates alike are being directed to secure an effective control of the sale of fermented beverages as well. By " retail and bar trade" is meant traffic in native spirits* in quantities less than 66 gallons at one time. * The native spirit of the Scandinavians is commonly called "braendvin," generally translated into English as "brandy." When, therefore, in the succeeding pages the occasion arises to use this word, it must be understood as referring to a liquor distilled from.potatoes or corn, and containing from 40 to 50 per cent, of alcohol. Till-: SCAXniXAVIAN SYSTEM. II The alcoholic conieiit ranges from 40 to 50 per cent. In Norway the minimum for retail sales is placed at .35 of a quart, while in Sweden it is a little over a quart (1.056 quarts). The licensing system is the underlying principle of the liquor laws of Sweden and Norway, but so modi- fied that prohibition is not only made possible but actually encouraged in rural communities. For the larger municipalities also the door is left wide open to local option, as no license may be granted if the people so express their will through their chosen representa- tives.* In the country the policy is to favor prohibi- tion. So successfully has this latter been carried out that few licenses are in operation in the rural districts of either of the two countries. In Norway a country innkeeper was not obliged to keep spirits on hand, and he was expressly forbidden to sell to any person living v/ithin a radius of 3! miles from his hostelry. Proba- bly few men were thirsty enough to hitch up their horses and drive seven miles or more for the purpose of getting a drink. Under the new law the bar trade in spirits is interdicted in country communities. Rep- resentatives of foreign firms are forbidden to canvass for orders. As far as possible, complete domestic control is secured. The licensing authorities in the cities, towns and villages of both countries are the magistracy, acting with the advice of the municipal representatives or general town meeting, and with the hernial assent ot the governor. The reason why the latter functionary is made a party to the transaction is that, ex officio, he *The Norwegian law of July, 1894, establishes local option by direct vote on the question of license m each coninuinity. (Jn this question both men and women are entitled to vote. 12 THE LIQUOR TRAFFIC. is the chief of the police system of the province. Hence, when consenting to licensing concessions he will naturally have in mind the facilities offered for policing saloons, and knows better, perhaps, than any one else the records of the applicants. The prevailing method of public control is the so-called " company monopoly." This feature was authorized in Sweden in 1855, and in Norway in 187 1. It has so largely superseded the practice of disposal of licenses at auction that in Norway, to-day, fifty-one towns* and landing places, including all of any impor- tance, have adopted the plan. In Sweden seventy- eight towns have granted the monopoly to brandy companies; in twelve the sale by auction, 2. e. granting individual licenses for retail and bar sale of spirits to those who offered to pay an excise tax of 4 cents a quart on the highest amount of probable sales, with 798^ gallons as a minimum, is still adhered to; in ten there are privileged licenses only, /. e. licenses granted previous to 1855 by royal warrant and good for the lifetime of the holder; and in two small towns prohibi- tion prevails. Generally speaking, in the country pro- hibition, and in the towns, the company system, repre- sent normal conditions. Considering the enormous territorial extent of the two Scandinavian kingdoms and the preponderance of the agricultural population, it is not difficult to see that the majority of the people live under a regime of local prohibition. Local option is in Sweden and Norway a concomitant of the com- pany system. The licensing authorities in any community are authorized to grant a monopoly of the retail and bar *" Towns " here used to include cities and larger centres of population as distinguished from rural communities. THE SCANDINAVIAN SYSTEM. 13 sale of spirituous liquors to a commercial company formed for the purpose of undertaking them, without any other financial return than a rate of interest on capital invested of 5 per cent, in Norway and 6 per cent, in Sweden. Strictly speaking, the Norwegian law does not fix the rate, the by-laws of the companies prescribing it under the sanction of the Home Depart- ment. Five per cent, has become the customary fir are. All remaining profits go either to the munici- pal treasuries (Sweden) or are applied (Norway) largely to objects of public utility, except 15 per cent, which is paid into the local treasury in lieu of the excise tax on consumption, now abolished. The fundamental idea in the minds of the inaugu- rators was to create a system where the element of private gain should be eliminated from the sale of intoxicating liquors. They meant to attack the evil directly from its economic side, and in this they acted wisely. Any plan to be effective must comprise this feature. Men engage in the hquor traffic, not deliber- ately to ruin their fellowkind, but to make money, and, as a rule, all the money they can. Remove the motive and a bulwark is erected against abuse. It is true that there will be for a time an overflow, but this represents a positive demand for consumption, and can be provided for by the company monopoly plan. Sounder education, temperance propagandism, hy- gienic ameliorations, and a host of other things will so diminish the feeding streams that ultimately the over- flow may entirely cease. Shareholders in companies are, as a rule, persons who have public interests deeply at heart. Never has the stock, as is sometimes alleged, been held for speculative purposes. Three-fourths of the shares of H THE LIQUOR TRAFFIC. all the companies in Norway are now owned in hold- ings of one. In Sweden the shares often figure in the list of donations to public and philanthropic institu- tions, the original owners having so disposed of their holdings at death. During recent years, in Norway, shares have sometimes changed hands at a premium. Enemies of the system have cited this as evidence that speculation was rife. A satisfactory explanation is easily found when one understands that the posses- sion of a share has hitherto given the holder the right to vote at the annual distribution of the profits arising from the company's operations. Persons interested in particular institutions naturally sought the privilege of voting in order that due recognition might be given them. The statement that shares have changed hands for speculative purposes is positively ridiculous. In Nor- Wi^y, as I have already pointed out, three-fourths are distributed in holdings of one. The capital stock is always small, both absolutely and in proportion to business done. The Christiania company is capitalized at $42,880, and the Langesund company at $160. They are respectively the largest and smallest in Nor- way. Mr. Koren, in the report of the Massachusetts Legislative Commission, has pointed out that the largest dividends in 1892 were paid to the shareholders in the Christiania company, and they received on the average $15 each. The proportion declines until we reach the Tonsberg company, whose sharetiolders were remunerated at the rate of 13 cents. Small as the share capital of companies is, it is hardly ever fully called in. Frequently not more than cent, is paid up. Interest is receiv ■5 per only the quota paid in. Even though the rate may be TlIK SCANDINAVIAN SVSTKM. 15 slightly higher than current payments by sound finan- cial institutions, it amounts to nothing when we con- sider what a mere pittance individuals receive. There never was a more senseless charge against the Nor- wegian system than tha*^ .vhich intimates that liquor companies are run for the benefit ol shareholders. But what guarantee is there that the companies will entertain a loftier conception of civic responsibilities than individual liquor-sellers ? Will they not seek to exploit the business /r^ bono publico f In the first place, they are public corporations, whose by-laws receive official sanction, and wTio make, one may say, with the licensing authorities certain definite contracts. Secondly, for forgetfulness of public weal or for any breach of trust the governor has the right to withdraw the license privileges without compensation. Approval of the by-laws also being " only for the present," the government ma}'' at any time bring a faithless corpo- ration to a change in policy simply by threatening it with extinction. The control is strict, and one com- pany has been so treated. More frequent necessity has not arisen. Thirdly, the licensing periods are very short, five years in Norway and three years in Sweden, except in the smaller towns, where one year completes the term. Fourthly, the character of men, who, if not precisely from a sense of duty, at least with the certainty of no financial reward, become interested in the liquor traffic, is almost alone a guarantee that philanthropic management will prevail. An intimate relation exists between public authori- ties and the companies. In the first place, as we have already seen, the by-laws are subject to the approval of the magistracy, municipal council, and governor. Closing the public-houses in cases of emergency legally i6 THE LIQUOR TRAFFIC. r! takes place upon the order of the governor. The sanction of public authority is given to the price-lists. A reduction in the number of licenses may be effected arbitrarily at the end of any licensing period by popu- lar vote. In Norway the appointment of bartenders and other officers is subject to confirmation by the magistrac}'^ and municipal council. In this close alliance there reside a benefit and a danger. Every effort made to enjoin upon the com- panies a proper consideration of public interest and convenience represents the former ; but from the civic standpoint, the intimate intervention of the local gov- ernment, especially in communities where standards of political morality are not as high as they are in ihe Scandinavian peninsula, may lead to serious inconve- nience, and even danger. From these theoretical considerations in the present instance a final appeal must be made to the economic, social, and moral experiences resulting from the operation of the system. Their consideration will assuredly convince an impar- tial person that the practical benefits have far out- weighed the possible drawbacks. Indeed, very few of the latter have ever been realized. Regulations for policing public-houses and retail shops respond, on the whole, to leading requirements. Sales are forbidden to minors — that is, to persons less than fifteen years of age. The companies have volun- tarily and universally raised the limit to eighteen. Retail shops are closed on Sundays and holidays in both countries. Saloons in Norway are shut from I p. m. on Saturday until 8 a. m. on Monday, and for these same hours on days preceding and succeed- ing holidays. On other we.ekdayj? they are open from 8 a. m. to 7.30 p. m., as a rule. In some of the n I ; THE SCANDINAVIAN SVSTEM. 17 towns they close in tlie middle of the day for an hour and a half, the idea being to withdraw from the work- inginan the temptation to drink while goinji^ from his work to his home for the midday meal. In the even- ing- the hour for closing comes so early that carousing is practically an impossibility. Indeed, but little time is left after the working-day is over in which to secure drink at all. In Sweden bars are open on Sundays at mealtimes only, and sales are restricted to guests eating. On weekdays the hours prescribed are 9 a.m. to 10 p. m. in towns and villages, and till 8 p. m. in the country. As regards the morning hour, the governors have authority — and usually exercise it in the case of larger cities — to grant exceptions to this rule, so as to permit the opening of the restaurant-bars at an earlier hour. This, however, is not meant to afford extra opportunity for drinking, but to respond to the needs of unmarried male workers, who from time immemo- rial, in Swedish cities, have been accustomed to take their meals in public-houses. The practice furnishes an explanation to the Swedish law prescribing that cooked food shall be kept on hand in every bar-trade place. "^ In Norway, national customs being different, quite another policy as regards food has been adopted. No loitering whatever is permitted in public-houses; indeed, in the majority of them no seats may be found. As soon as a man has taken his drink he must leave the premises. In .both countries the sale of brandy to intoxicated persons, or in such quantities that intoxica- tion is likely to ensue, is illegal, while debts contracted for liquor are not recoverable. Business is carried "*There are scarcely any bars in Sweden such as one sees in England and the United States. Rather should we calf them "saloon-restaurants." I 1 8 THE MOU(^K 'I"KArFlC. on strictly for cash at all i)l.Aces of sale 'oelonginj^ to the companies. Early-closing is fraught with important and benefi- cent consequences. The saloon is the one social institution with which avast majority of our city popu- lations is intimately acquainted. To its hospitable counter the workingman repairs on pay-day to treat his foreman and his comrades. Before leaving, a fourth part of his weekly wages has disappeared. Enough is saved to pay the rent ; the family must get along somehow with the rest. An evening's convi- viality has to offset restricted nourishment, reduced vitahty, loss of social opportunities to the children, and an ever-widening domestic breach. The Norwe- gian practice of opening sa'oons at eightin the morn- ing on weekdays, and closing them at half past seven — excej-tt Saturdays, when they are shut up at one — is entirely commendable. The temptation to carouse is almost obliterated, for the time and opportunity are lacking. But it is manifestly impossible to insist on such early closing where ordinary licensing prevails. When financial gain plays no part it matters not how short is the period of sale ; but certainly it is not just to charge the saloonkeeper under the private profit system a good round sum for his privilege and then forbid him to ply his trade when he has the best opportunities for making money. The Scandinavian method offers other important advantages for the reformation of what one may call the "saloon habit " of workingpeople. Drinking is not the only — nor, indeed, the principal — motive. The craving for recreation, amusement, and human inter- course brings them to the saloon. The Gothenburg company rendered an important service when it can- THE SCANDINAVIAN SYSTEM. '9 didly recognized the need of popular social centres. A part of its profits are annually spent in the mainte- nance of five reading, writing, and club-rooms. Light refreshments are served, hut ministry to the gregari- ous instincts is the raison d'Hre. The attendance record of 217,207 visits in 1892 is a fair measure of appreciation. Not satisfied with this, the company has established an intermediate agency fc inducing workingmen to break away from saloons. It has opened four restaur- ants, where bountiful portions of food are provided at cost price. Cooking is made an art, and the service all that can be wished. Only a single glass of liquor is allowed (on paying for it, of course) at meals ; but so superior have become the attractions of good food that not more than one-third of the customers now think of demanding it. About $1000 annual loss results from running the eating-houses, but the policy indicated furnishes the strongest possible evidence that the company has not forgotten its philanthropic aims. As regards wine and beer, it is only necessary to say that few restrictions are enjoined upon their sale. Licenses are granted for the bar-trade upon payment of an exceedingly small sum. It has been calculated that, for most Norwegian towns, the profits derived from the sale of four bottles daily would amply indem- nify the holder for the cost of his license. Any mer- chant may dispose of beer in bottles. Those who possess brandy licenses have ipso facto the right to dispense fermented beverages. There is no excise tax on either beer or malt. One cannot wonder, there- fore, that with the spirit trade so heavily handicapped, and so large a measure of freedom accorded to fer- 20 IMK F loroK TRAI'I'IC. nientecl beveraj^cs, tlie consumpiion of the latter sliould have <;reatly increased ; still, the ratio of advance is much smaller than in many other countries — the United States, for example. To persons unacquainted with liie liquor trade it appears remarkable that tlie capital stock of tliese brandy monopolizing companies sliould be so small. Were the facts better known, surprise would not be felt, even though the annual balance shoukl frequently represent several times the amount of the capital actually invested. This is a general condition which happens to be particularly well illustrated in the case of Norway and Sweden, as the following statement will show : — Locality. Ciipital Stock. (JrojsUcceipts Net Profits. Christiania $42,880 Ber<'en 21 440 $346,235 197,280 2(58, 5;!0 643,095 860,835 $74,005 43,835 112,2(50 413,495 380,990 Gothenburg 27,470 Stockholm 43,202 Norway (as a whole) 164,210 The figui'es in the columit headed " net profits" in the above table exclude the excise paid annually to the municipality for the license monopoly. In the present instance, one might with perfect propriety include these sums. If one does so, taking Norway as an example, the credit balance would be swelled by $105,955 or to the total of $486,945 instead of $380,990. Reference to the table also shows that the ratio between sales and profits is by no means the same in the four Scandinavian cities. The net surplus is about 64 per cent, of the receipts in Stockholm and 42 per cent, in Gothenburg, while it represents 21 per cent. Till': SCANDINAVIAN SYSTEM. 21 in Christii. iia and 22 per cent, in Bergen. There are several reasons for this, but the principal one is that the consumption per h»^ad of population is greater — indeed, more than double — in the Swedish than in the Norwegian towns. As between Stockholm and Cioth- enburg a readjustment of accounts this particular year explains tlie disparity. The different methods of sub-licensing also exert an influence. In Norway the companies reserve the monopoly of sale of higher- grade spirits, cordials, etc., whereas in Sweden this trade is largely conceded to regular wine merchants, restaurant and hotelkeepers. Interest-charges on large stocks, shrinkage and breakage, absorb consid- erable sums. Again, the Norwegian hotelkeeper has no motive to push the sale of high-grade spirits, since all pecuniary advantages belong to the companies. When Stockholm, profiting by the example of Gothenburg in giving a company the control of the liquor traffic, proposed to buy out and pension off all the publicans and retail dealers in spirits, in order to secure a complete monopoly of the business, the pro- ject met with oppi jition on the ground that to under- take such a financial risk would not only be absurd, but would bankrupt all who were hardy enough to invest their funds in the enterprise. The city perse- vered, however, and after one or two unsuccessful attempts, finally succeeded in arranging with every holder of a license for the surrender of his privilege in return for a life pension, varying, of course, in propor- tion to the value of his business. It was found at the expiration of the first year's operation that, after setting aside a fair amount for reserve and paying a dividend of 6 per cent, to shareholders, besides, of course, meeting all necessary expenses, a sufficient sum remained in f 22 TIIK [JOUOR TRAIFIC. the treasury to liquidate the pensions of all the ex-salocnkeepcrs of Stockholm for two and a half years to come. The by-laws of the various companies are, as has already been noted, subject to the approval of the magistracy, the municipal council, and the governor. Their contents deal mainly with the amount of capital stock and method ot payment for shares, the qualifica- tions and duties of shareholders and directors, the obligations of employees, and rules of internal admin- istration. In Sweden, surviving shareholders are usually given an option on the purchase of shares otfered for sale. The design is to secure a perpetua- tion of management along good lines. The contracts made with such employees of the companies as managers of bars, retail shops and eat- ing houses, show how much the public interest is con- sidered. It is specifically stipulated that all sales shall be on corporation account, the employees deriv- ing absolutely no benefit therefrom. The original practice was different, and the present one was inaug- urated as the result of experience. At Gothenburg, a certain kind of maudlin sympathy dictated the employment of ex bartenders and saloonkeepers as servants of the company. Their salaries were pro- vided for, in part, by a certain percentage on sales. The experiment resulted in abject failure, as might have been foreseen. The keystone of the new r6gime was discouragement of drinking ; and it should have been recognized as absurd to expect men of this class to ignore both the influences of habit and the stimulus of self-interest. Here is the groundwork of the charge first formulated against the Gothenburg company — of disregarding the .public interest, and of permitting THE hCAM)INA\ IAN SVSTKM. 23 pretended philanthropy to de^tjenerate into positive aggrandisement. No conij)any since, so far as I am aware, has ever attempted to pay its employees in any other fashion than a stipuhited sahiry. The conjpen- sation is liberal, conforming closely to prevailinj^'^ busi- ness stipends, and the companies have no difficulty in securing; efficient help. In Sweden where manaj^ers are compelled to keep well-cooked food, non-spirituous beverages, and cij»ars always on hand, the profits from these sales form a substantial jierquisite. They employ their own assist- ants, subject to the approval of the company. The latter allows fixed indemnities — two thirds of which are paid to the servant in cash, while l)oard and lodg- ing stand for the other third. Managers must follow the fixed tariff of prices, and serve liquors in glasses belonging to the company. They are held personally responsible for the observance of all regulations, and are forbidden to sell to minors under eighteen years of age (three years beyond the legal limit) and to intox- icated persons. They are not allowed 10 follow any other occupation whatever during their period of service. Honesty, fidelity and efficiency are the con- ditions of continued employment, as their supposed possession furnishes the sole motive for original appointment. A perfect method of control and account prevents either the giving away or fraudulent disposal of liquors by managers or any of the company's assistants. Civil service rules are applied in promotions, the chief requirement being length of service combined with good conduct. In cases where several individuals pre- sented equal merits on this point, the preference would be given io the employee whose record of sales v^as the lowest. 51 24 THE LIQUOR TKAK I'lC. Besides the niantl(>ii per by C()ni|iaiili'8 of laliuliltuut. toliil suit's. i 1 Inliiibiliint. total salcH. (juiirts. liuiirtH. 1876 7.0 8.3 1885 3.7 31.9 1877 C.3 14.8 ■1886 8.2 41.3 1878 4.7 22.3 '1887 3.0 43.4 1879 3.4 24.5 1888 3.1: 40.1 1880 4.1 21.1 ;1889 8.4 41.8 1881 3.2 30.1 .890 8.8 49.1 1882 4.0 25.3 il891 8.8 42.9 1883 8.5 34.1 'l892 8.3 51.3 1884 3.7 34.2 Concurrently with the growth of the company system there has been a notable diminution in the per capita consumption of spirits. When the companies made one-twelfth of all the sales, the average individual drank 7 quarts, reckoned at 50 per cent, of alcohol, per annum. When they did one-half of the business the same individual consumed but 3.^ quarts. Is there not here, again, strong ground for asserting that the Norwegian method of control has caused a notable decline in consumption? The decrease has not been steady from year to year. Variations have taken place, notably between 1879 and 1880, between 1881 and 18S2, and again in more recent years. Almost uniformly, a rise in per capita con- sumption has betn accompanied by a relative decrease of business done during that year by the companies. 1^ 38 THE LIOUOR TRAFFIC. Whatever was the cause, the advance, therefore, could not have been due to any laxity on their part or to any greater drinking by their patrons. Let us note that in 1880 the companies sold but 21. i per cent, of the total quantity, whereas in 1879 they dispensed 24.5 per cent. In the meantime consumption advanced from 3.4 to 4.1 quarts per inhabitant. Again, in 1881 they monopolized 30.1 per cent, of the total trade. 'Wi^ per capita consumption was then 3.2 quarts; but in 1882, when the business declined to 25.3 per cent., consumption rose to four quarts. In 1887, when per capita consumption was the lowest, the companies* proportion of total sales reached almost the highest point it has yet attained. With that proportion abso- lutely the highest, as in 1892, individual consumption is infinitesimally near low-water mark. To-day spirit- drinking in relation to population is less current in Norway than in almost any other civilized country. Divorcing money-making from the saloon and retail spirit business — in other words, the Scandi- navian company plan — furnishes incontestably the reason why nations like Sweden and Norway, even though heavily handicapped by climate and hard- drinking customs, are nevertheless able to show a remarkable decrease in consumption, while other countries which allow private profits to be made are being slowly submerged by the alcoholic tide. Mr. John Graham Brooks, one of the Massachusetts Legis- lative Commission, has strikingly illustrated this fact in a diagram which will repay careful study. The figures cover practically the same period, except in the case of Austria, so that prevailing economic con- ditions — that powerful disturbing factor — may be adjudged fairly similar. ■* rr, C5 00 m A M H to C S5 O HI H (^ % C Shi CS Em n < if c S5 CI cs 30 I- 00 cs CO I— Ico CO 2; C 30 ,00 00 30 I- 00 Si 00 1^ CO CO 00 -3 o > o> in cj O 00 CO CO a GO >« OS a o "•"Sis-? 2S e- »n o ^1 40 THE LIQUOR TRAFFIC. ,1 ' Are these coincidences purely accidental ? He would be a bold man who would answer affirmatively. Prohibitionist exponents of temperance have some- times been misled into asserting that improved con- ditions in Norway and Sweden are most largely to be credited to the growth of total abstinence. The teeto- tallers are reliably estimated to number about 300,000 to 350,000 in the two countries. They constitute about 4 to 5 per cent, of the total population. If the marvellous decrease in consumption is due to them, there is no denying the fact that they must have been very hard drinkers previous to conversion. A suppo- sition of this sort only serves to show the absurdity of the plea, especially when coupled with the fact that half of their number are women and children. Total abstinence societies are growing in member- ship and are exercising a certain amount of influence. That they are not more powerful is due to the fact that few -amongst the really influential members of society are adherents. If decreased per capita consumption were due to the efforts of total abstainers, the results ought to be most evident during later times, because it is in recent years that they have grown in number and prestige. We have, on the contrary, a slight increase of liquor- drinking since 1887. It is so small as not to be worth noticing except to dispose of the claim before us. The phenomenon is undoubtedly due to improved econ- omic conditions, as the statistics of small deposits in savings banks show that the masses of the people are in a better position to indulge themselves now than formerly. The company system, in encouraging local option, in reducing temptation, in stamping drinking as a dangerous practice, and in struggling valiantly to I' i \i THE SCANDINAVIAN SYSTEM. 41 reduce consumption to the lowest limits, ought rather to be considered as a factor in the extension of total abstinence. This is more just than to give an undue measure of credit for the good results accomplished to the propaganda and practice of a comparatively small number of extreme temperance reformers. One might quite as consistently argue that teetotal societies have accomplished nothing in the United States because liquor-drinking has advanced contemporaneously with their increase in membership and activity. Let us cheerfully accord to this body in Scandinavia a due meed of praise, especially where, as in some notable instances, they have worked harmoniously with officials of the local companies to reduce drinking; but let us not credit them with feats they have not accom- plished, and in the very nature of things could not accomplish. If it is teetotalism which is chiefly reducing the con- sumption of spirits, why is it that the same effect is not seen in connection with beer? Drinking malt bever- ages in Sweden and Norway has increased, notwith- standing that they are relatively dearer than spirits. An historical background, now happily passing, reveals a mistaken sentiment which urged beer-drink- ing as a temperance measure. The consequence is that beer, with some exceptions in Norway, is not yet included in the companies' monopoly, its sale is envir- oned with no restrictions worthy of mention, and it has become the responsible factor in preventing a large decrease in drunkenness. Economic conditions have not brought about decreased per capita consumption. They play a part in yearly fluctuations, but, as we have already seen, savings bank returns show that people could now I i 42 THE LIQUOR TRAFFIC. l! ' drink more than formerly if they would. The growth of beer-drinking, a much more expensive habit in Scandinavia, argues towards the same conclusion. To the company system belongs the almost exclu- sive credit for reduced per capita consumption. Elimi- nation of money-making, decrease in places of sale, and almost every reasonable method of regulation that could be adopted, speak for themselves. Many lead- ing firms of distillers and rectifiers of spirits in Sweden " openly state that there has been a constant and marked falling off of consumption of domestic spirits, unaccompanied by a corresponding increase of impor- tations, and attribute it exclusively to the wide adop- tion of the company system." Foreign diplomatic and consular representatives and local police and administrative officers testify with practical unanimity, and from a neutral standpoint, to the all-prevailing influence of the company plan for good. Religious sentiment, growth of education, and the develop- ment of abstinence, fill a place which in another gener- ation will be larger still. The company system Las cleared the ground and prepared the soil for them to take firmer root. Most methods of controlling the liquor traffic yet devised break down when applied to large cities. Will the Scandinavian plan stand this supreme test ? Let us see. Below are the statistics of sales by the Goth- enburg company from 1874 to 1892 : M o o a cq o p en a: K ts H o o H n o H H CO a o p O" OQ P o EH 0. CO bi O OQ W o u o a 3 « ^ 3 .5 S oa3.!-.t; 5 ja O O ^ -< o cc C5 c: a: Cl JO CJ S'l C-1 CI (M 1— I !— I r-l r-1 OC OJ t - C O: CO CO CO I- I- I- CO ti -^ c o to CS •.- ^-i 'tiTt.t-'«0«0O00t^iXiJ>;i-^ i-H rH (M' (M" r-H O Oi CO l--^ t^ t>^ !>•' t~^ :0 lO lO O IC <;OiO<-ir~Tt.OC0(M00CiOi-lC^J05l0 0_i0 O^CO CD (M i o'^'-Ti— rt^i-rt^co'"-^co"r-rio~co'o t^TtTco^co" TfHTtioiM'fcO'^iooouS'— iioooi^iOi—ieoc^ t^OOOOl-^iO-^-^COtiiCCOCDCOCDCOt^CDlO! •^rHOC0C0»-l00rHr-ITt<050i-^C0t>.C0OI>; i-l CO CO ^1^ IC W CO CO CO cc' OJ »0 CO* 05 t-^ 05 ' ■< 00 i C^IOSCO'OOO'^OlOCOOCOCOOiCOiCi— irii^; O05CDi0(M0iTffC0C0iM"*ti O^OS^i— 1 >— '_^t^ ■<:frt»cO(Mi-(w000000500i-iC- 05 ■*' c^i 1-! 16 10 co' co' CO rH r-^ t^ id i>^ ■^r^Cii^oococoi^iocO'tiiOinooosoooo lC»005t-»C0OOC0C00DCiC00;0iCTa6't^cfi'':OiDieit-^ai 1-1 00 10 t^ 10 iC 00 10 t^ , 03 » m 44 THE IJOUOR TRAFFIC. Durine? the period, the total sales of spirits declined more than one-half — 29 quarts per inhabitant, to 14.3. There is a salutary diminution in all branches of the trade — bar, retail, and higher-grade spirits. Drinking in public-houses shows the lar^^est relative decrease. It has been objected that these figures do not give the total actual consumption of spirits in Gothenburg. That is true. There are five privileged license-hold- ers in the city, and statistical returns for them are needed. Mr. Koren, who was recently in Sweden in the interest of the Massachusetts Legislative Commis- sion, has prepared a table which is here incorporated with a few remarks. "As the table given below," says he, "differs some- what from those given in other publications, it is well to state how it has been made up. In order to present as accurate figures of the per capita consumption as possible, it is necessary to add to the population that of four suburbs — forming, in fact, part of the city, though formerly belonging to the country parishes — in which no sale of spirits whatever takes place. The very large floating population {^Gothenburg is the chief port 0/ Swede7i, as well as the base of supply for large country districts') has not been considered. Secondly, to the quantity of liquor sold by the company has been added that disposed of by the licensees having ' burgess' rights,* calculated according to the excise paid by them ; also the quantity sold by the twenty- three wine merchants, according to the license fees exacted from them by the company. But as these dealers estimate that at least one-half of their goods are ship':>ed to points outside of the city, only one-half enters into our figures. From this quantity, however, has been deducted the quarts of higher- grade spirits sold by the company, which are always THE SCANDINAVIAN SYSTEM. 45 purchased from the wine merchants. In order not to make the estimate too low, the quantity of higher- grade liquor bought by the privileged licensees ironi the same dealers has not been entered. The results thus obtained are as follows": Consumption of LuiUOR in Gotiiknburg, 1875-1892. 1 a. V •a n-o a mate latioi •then I sub 1875 64,978 1876 06,847 1877 69,083 1878 71,749 1879 73,256 1880 75,264 1881 78,695 1882 80,117 1883 85,615 1884 89,173 1885 93,212 1886 97,392 1887 100,958 1888 104,332 1889 108,039 1890 112,264 1891 115,377 1892 117,918 Sold by a K C a o 2 O CO •r. " Quarts. [ Quarts. 1,740,110.8 28,209.8 1,844,739.1 28,209.h 1.801.056.7 30,422.0 1,721,830.6 30,422.0 1,547,276.5 34,570.6 1.401.892.5 34,570.0 1,447,927.7(34,570.6 l,358,094.2i35,953.4 1,484,126 3 35,953.4 1.553.262.6 40,102.0 1.611.915.3 40,102.0 1.655.502.1 42,268.0 1.633.007.4 40,683.0 1.670.564.8 44,909.8 1.657.070.2 14,381.4 1,714,668.8 67,628.8 1,633,688.6J50,827.3 1,523,251. 2153,891. 7 CC m ii ■A O .2 «J S'5 O «H Quarts. 323,582.7 323,582.7 282,097.7 323,582.7 298,691.7 241,304.2 241,995.6 253,063.4 280,714.5 288,011.7 284,863.0 271,035.1 219,793.6 219,793.6 215,038.5 215,038.5 214,510.1 214,510.1 Quarts. Qts. 2,269,490.1 34.9 2,380,431.6 35.6 2,269,119 6 32.8 2,288,132.8; 31.8 2,077,288.5 28.3 1.878.607.4 24.9 1.863.033.5 23.6 1.802.288.1 22.4 1.692.908.2 19.7 1,774,567.9 19.9 1,834,640.41 19.6 1.869.339.3 19.1 1.790.987.6 17.7 1.833.228.4 17.5 1,8(0,532.4 16.6 1,872,216.3 16.6 1,764,915.0 15.2 1,675,874,3 14.2 The facts in this table are even more favorable to the company than the preceding one. The decrease in spirits drunk in Gothenburg was considerably more than one-half from 1875 to 1892. But no tabular state- rnent can do exact justice to bo7ia fide inhabitants. The average citizen, in 1892, did not drink 14.2 quarts of spirits. This is easily demonstrable inferentially, though not measureable statistically. Gothenburg is a large seaport, and a prominent centre of trade and distribution. There is always a large transient popu- 40 TIIK LIQUOR TRAFFIC. if lation, the sailor and fisherman elements of which are hard drinkers. As a seaport town, provisioning of steam, sail, and fishing vessels is largely carried on, and this for our present discussion is a very important matter. Dr. Sigfrid Wieselgren, than whom there is no higher authority in Sweden, illustrates the position of Gothenburg by another striking instance : " In the province of Westmanland there are four little towns, of which the two larger are Westeras, with a population of a little more than 8000, and Sala, with about 6000 inhabitants. In both these towns there are 'brandy companies,' which, during the year 1891-92, sold respectively 350,763 and 326,130 litres — i. e. about 43 litres per head of the population in Westeras, and about 54 litres per head in Sala. Now, are we to believe that there is such an enormous consumption of spirits in these two towns ? By no means. The great sale of these companies is very easily accounted for by the fact that in the whole province there is only one license for the sale of spirits in the country. The sale of spirits in the above mentioned towns thus repre- sents the greater part of the consumption of spirits in the whole province. And the consumption per head of the population in the whole province is found to be 7.24 litres. " Now, if the method of identifying the sale of spirits in a certain place with the consumption of spirits in the same place is unreasonable with regard to Westeras and Sala, it is quite as unreasonable with regard to Gothenburg. According to the same calculation as in the former case, the consumption of spirits in the prov- ince of Gothenburg was for the year in question 8.50 litres per head." The statistics of sales by con'nanies in any town are not a fair measure of individual consumption amongst THE SC.A.NDINAVIAN SYSTEM. 47 citizens. The more important the city is as a trade centre, and the wider the area of no-hcense country districts to which it is tributary, the greater must be the allowance made. Even the small towns suffer in proportion. The advance of prohibition, or practical no-license in the country districts, has cast on them a burden, so far as published statistics of drink con- sumption is concerned, which they are not entitled to bear. Non-understanding of this fact has led to foolish statements comparing, for example, the consumption of spirits in Gothenburg with other places outside the country. Bona fide residents in Gothenburg and Stockholm, in Bergen and Christiania, in reality drink little, if any, more than their compatriots, though sta- tistically, from force of circumstances, they are made to appear less temperate. Below are statistics of sales of the Stockholm com- pany, both as regards absolute quantities and number of quarts per inhabitant, since its organization. Quantity of Liquor Sold tkr Inhabitant from October 1, 1877, to September 30, 1892. Inhabi- tants. Quarts of liquor sold. Quarts per Inhabitant. Years. At bar- trade places. At retail places. Total. 1877-78.. 1878-79.. 1879-80. . 1880-81 . . 1881-82.. 1882-83 1883-84.. 1884-85.. 1885-86 . . 1886-87.. 1887-88. 1888-89.. 1889-90.. 1890-91 . . 1891-92.. 153,528 161,722 163,040 167,868 174,702 182,358 190,842 200,781 211,139 216,807 221,549 228,118 236,350 245,317 248,051 4,308,789.60 4,082,591.47 4,104,705.20 4,145,625.09 4,072,594.04 3,913,585.51 3,710,518.19 3,947,429.19 3,788,060.87 3,775,410.36 3,645,743.65 3,574,102.90 3,722,899.61 3,643,581.12 3,573,512.13 14.61 13.88 13.47 13.82 13.10 9.82 9.01 9.04 8.02 7.79 7.51 6.99 6.86 6.68 6.49 13.46 11.36 11.71 10.88 10.21 11.64 10.43 10.62 9.92 9.62 8.94 8.68 8.88 8.18 7.91 28.07 25.24 25.18 24.70 23.31 21.46 19.44 19.66 17.94 17.41 16.45 15.67 15.74 14.86 14.40 48 THE LIQUOR TRAFFIC. The l)eneficial effects of the company's operations are set forth in the following statement from the annual report of the brandy company. Possessing 170 licenses to sell over the bar, in the year 1892, it made use of but 63 on its own account for the sale of native spirits, transferring 80 to other parties, to be utilized in traffic in higher-grade liquors. Twenty-seven it did not utilize at all. As regards retail licenses, possessing 90, it made use of 27, transferred 51, and made no use of 12. The sale of liquor over the bar in 1877, when the company first came into existence, was 14.61 quarts per inhabitant. Successive years mark an almost uniform decline, until in the last fiscal year low-water mark was reached at 6.49 quarts per capita. In the same way, the retail sales have declined from 13.46 quarts per inhabitant in 1877 to 7.91 quarts at the time when the last annual report was prepared. Taking these two together, we find that the total consumption per inhabitant, which in 1877 was 28.07 quarts, now amounts to but a little more than half this amount, namely, 14.40 quarts. The preceding table does not include the sales made by the sub-licensees. The fees paid by the latter vary somewhat in proportion to the business done. As the amounts received annually by the company for its con- cessions show a decrease rather than an increase, it seems reasonable to suppose that there has been no increase in the amount of liquor consumed on the premises of sub-licensees. Borrowing the table from the report of the Massa- chusetts Legislative Commission, which has been made up on a similar basis to the one already quoted for Gothenburg, slightly different figures are reached. IME SCANDINAVIAN SVSTKM. 49 The lesson is the same. There has been a marked redaction in individual consumption of spirits. The table covers only the ten-year period from 1882 to 1892. Consumption op Liquor in Stockholm, 1882-1892. YearH. Estimated popula- tion of Stock- holm and surroiiiid- iriK dis- tricts. 1882-83 240.725 1883-84 250,149 1884-85 1885-86 1886-87 261,089 271,928 279.583 1887-88 284,764 1888-89 1889-90 393,070 3011.860 1890-91 804.094 \ 1891-92 308,528 Sold by Company. Quarts. 8,913,585.51 3.710.518 19 3,947,429.19 8,788,666.87 3,775,410.30 3,045,743.65 3,574.102.90 3,722,899.61 3,043,581.12 3.573,512.13 Estimated Sales ol' I'rivato Dealers. Total. Quarts. | 1.690,720 1,090,720| 1.690,720 1,690,72'! 1,690,720 1,690,720 1,637,885 1,690,720 1,585,050' 1,585,050 Quarts. 5,604,305.51 5,401,238.19 5,638,149.19 5,479,386.87 5.466,130.36 5,336.463.65 5,211.987.90 5,413.619.01 5,228,631.12 5,158,562.13 Con- surap- tiou per InhaH itant. 23.28 21.59 21.59 20.15 19.55 18.73 17.84 17.99 17.19 16.71 These figures are far from just to the citizens of Stockholm. Only the inhabitants of the eight sur- rounding parishes have been added to those of the city proper. No account whatever has been taken of the floating population. The history of the formation of the Stockholm com- pany possesses some interest because of the successful application of the principle of compensation, a matter not under purview in America, but which from the traditional and hereditary tendencies of England, must needs be considered there. About the time that the Gothenburg company cotn- menced its operations, the authorities at Stockholm, moved by the increase of drunkenness in their midst, commenced to consi acr the question of liow far the 50 'rill'. F.I(jL(»R I K AI'I'IC. I! company system mij^ht be applied with them. Wlien the municipal council first looked into the matter they found that 367 {)ermanent licenses existed; of tliis number 135 were privileged, and most of them were founded upon " burg^ess rij^hts." None of the latter class could be taken away without the consent or the death of the possessor, and, in the case of those hold- ing^ upon " burgess rij^hts," until the decease of the wife of the one possessing* the privilege. A commis- sion was appointed to consider the legahty of the basis on which a part of the permanent licenses reposed. They reported in favor of a plan allowing life-pensions of not more than $134 annually to holders of licenses by *' burgess rights" who would surrender the privilege. Later a somewhat smaller sum, $120.60, was offered as an annuity to the holders of other permanent licenses. As might have been expected, this offer did not meet with much success, for the reason that the suggested compensation was inadequate. Furthermore, no account was taken of the value of separate businesses. All who possessed "burgess rights" did not naturally derive the same income, while as regards permanent licenses some would certainly be more favorably situ- ated than others. It is, therefore, not astonishing to find that in 1875 there still remained 146 permanent licenses, of which 77 were founded on ** burgess rights," which had not been surrendered for the annuities proposed. These, of course, were the most valuable franchises, and probably would never be surrendered unless some greater advantage were offered. Another method was now tried. Instead of waiting for the licensees to take the initiative, the commission set to work to make pri- vate arrangements with each individual holder, and with such success that in a fortnight's time they were 1' I" I IK SCANDINAVIAN S VST KM. 5' able to amioiincf that they held in their hands the ay^recments of 133 licensees to renounce their privi- leges in consideration ol life annuities — which, in the case of " burgess rights," was to be extended to the wife — varying (rotii ;^i34 to $536. The total sum thus given for the possession of these 133 licenses consti- tuted an annual charge upon the municipal treasury at the outset of $33,258.80. So quietly had the matter been arranged that no opportunity was given for com- bination in order to increase the price. The remain- ing thirteen who still held out were, therelore, speedily brought to terms on most advantageous conditions to the city. When the company began operations in October, 1877, with a complete monopoly of all licenses for the conduct of the retail and l}ar sale of spirituous liquors in the city, it seemed to be handicapped with the large annual charge upon it for compensation to the expro- priated license-holders. In fact, many wiseacres at the time predicted financial disaster, but the results of the first year, after paying all expenses and 6 per cent, dividend to the stockholders, showed sufficient surplus to provide for the compensation fund for a considerable period in advance. The annual charge on this account has diminished from year to year, as the old license- holdeis have died off, till eight only survive at the present day. Christiania, the capital of Norway, and a city now numbering about 170,000 people, possesses a brandy company which was organized in July, 1885. Previous to this there were seventy-two saloon licenses in operation, the holders of which also sold liquor to a considerable extent in bottles. Part of these privileges were held for life, and could only be taken I' 52 'J'HK LIOIOK I'K.M-FIC. under the expropriation proceedings authorized by the law of 1880, which gave a life annuity to the previous possessor equal to the average annual profit on his busi- ness durini> the three preceding years. The bar-trade licenses now held by the company number twenty- seven, and the annual charge on account of compen- ;ration to holders of life licenses amounted at the com- mencement to $5,896. It has since been reduced to $3,484, owing to the death of several to whom indem- nities had been adjudged. The company to-day pos- sesses the largest part of the bar trade of the city. It uses fifteen licenses on its own account, and concedes twelve to private hotels and restaurants, whose owners have been approved as managers in the service of the company. Twenty-nine merchants in Christiania, the majority of whom are grocers, hold licenses for retail and whole- sale trade independentl' of the company. At first it was a question of expropriating these also, in order that the company might become the sole retail licensee, but after mature consideration it was decided to leave things as they were, since it was feared that too great a financial burden might ensue. The majority of the holders of these licenses are now old men, and, in the natural course of aff-^irs, at their death their privileges will pass to the possession of the company without payment. The existence of these licenses is a serious draw- back, as are also the special bar-privileges enjoyed by a theatre, an hotel, and two clubs. As a matter of fact, the company dispenses barely 40 per cent, of the spirits sold in bottles and over the bar. Consequently, it is not remarkable that the following table giving per capita consumption of the company's wares does not THE SCANDINAVIAN SYSTEM. 53 show a decline. There is, indeed, a slight advance. Whether or not more spirits are actually consumed in proportion to population now than formerly, cannot be estimated, as the figures of sale by the twenty-nine merchants, the clubs, the theatre, and the hotel for pre- ceding years are not available. Such a supposition is not at all probable. If true, it would constitute an exception to experience elsewhere. The lesson to be drawn from the table is the importance of entrusting the company with a complete monopoly. Sales from 1886 TO 1891. Quarts of spirits sold. Con- -■ - ■ - sump- Year. tion per At bar-trade At i-etail Total. inhabi- places. places. tant. Quarts. 1886 .. .. 169,848 129.033 298,881 2.2 1887 . . . . 150.123 159.448 309.571 2.3 1888 . . . . 165.466 184.054 349,520 2 5 1889 . . . . 187.274 210,691 397,965 2.8 1890 . . . . 192,380 207,785 400,165 2.6 1891 .. .. 216.589 202,254 418.843 2.8 1892 . . . . 215,796 232,050 448,048 2.7 The increase has been chiefly in the bottle trade, and upon this the growth of Christiania as a seaport and commercial centre has undoubtedly exercised an influence. We come next to Bergen, the second city in Nor- way and its chief seaport. Statistics of the company's total sales are to be seen in the following table. In 1877, the year when opera- tions were commenced, the total sales of spirituous liquors amounted to 282, 1 28 quarts ; in 1892, to 351,695 quarts. In the meantime, however, the population had augmented one-third, so that, notwithstanding the I! 54 THE LIQUOR TRAFFIC. absolute increase, the conirair.pllon per inhaVjitant declined from 7 quarts in 1877 to 6.12 quarts in 1892. The decline is most noticeable in dram-drmking. Whereas in 1877 the average annual consumption under this head was 2.5 <\\i2,\\.^ pey capita^ in 1892 it was 1.7 quarts. Sales of Brandy in Bergen, 1877 to 1892. -d d Number of Quarts. S2- cc'-dS V- c ,/ ^ rt ^.2 U 5S 2 o'-o-S 2 rH 4-i 3 g s OJ 3 tH 3 OS 1877.. 40,760 103,566 166,810 11,752 5:2,128 7.0 1878.. 41,5l:> 90,962 140,689 7,933 239,584 5.8 1879.. 42,280 73,812 134,291 8,389 216,492 5.1 1880.. 43,062 68,508 136,010 8,123 212,641 4.9 1881.. 43,858 73,574 147,603 8,526 229,703 5.2 1882.. 44,669 77,509 156.654 7,025 241,248 5.4 1883.. 45,493 78,744 160;i26 7,064 245,934 5.4 1884.. 46,332 81,853 165,761 7,083 254,697 5.5 1885.. 47,995 83,719 159,820 6,091 249,630 5.2 1886.. 48,335 85,629 154,500 11,893 252,022 5.2 1887.. 49,623 86,924 146,220 21,446 254,590 5.1 1888.. 50,902 84,569 139,961 26,351 250,881 5.0 1889.. 52,252 86,2,^6 153,052 28,421 267,759 5.1 1890.. 53,686 88,844 177,652 30,894 297,390 5.5 1891.. 55,112 97,101 195,108 39,133 .^31,342 6.0 1892.. 56,513 101,406 204,825 45,464 351,695 6.2 Since 1888 the sales per inhabitant have increased. One cannot necessarily say that local consumption has risen, in view of the enormously increased tourist traffic to Norway in recent years, of which Bergen is the chief point of debarkment, the visits of the British and German fleets, and the enhanced wholesale business of the company. From 1887 to 1892 wholesale sales increased 112 per cent., and no part of them can be 1 i Till-: SCANDINAVIAN' SYSTEM. 55 credited to local consumption. There was likewise an advance of 40 per cent, during the same years in the bottle trade, a very large part of which was not at all due to local consumption, but to the tourist traffic. From 1887 to 1892 sales over the bar increased only 14 per cent., or in exactly the same proportion as the advance in population; this, too, notwithstanding the presence of at least 2500 additional foreign seamen. Mr. Koren has prepared the following table, in vv hich he has deducted one-quarter of the sales annually as extra-local, i. e. outside consumption. This estimate, in my opinion, errs on the side of conservatism, as applied to present conditions. But even if my view be incorrect, the proportion to-day is certainly much greater than it was during the first few years of the company's existence. There has really been a greater decline than the table makes evident. Consumption op LiqijOk in Bergen from 1877 to 1893. Estimated Population. si u 6 Sold in bottles at retail stores. Sold at chief warehouse at retail. Total, deduct in^ one- fourth. 1 « C+J a; j- « — *^ a'r S £ 5 S Quarts. Total average consumption per inhabi- tant. Quarts. Quarts. QviartS- Quarts. Quarts. 1877 40.760 103,566 166,810 11,752 211,596 2.58 5.19 1878 41, 'MS 90.963 140.689 7,938 179.691 2.33 4.32 1879 43.880 73,812 134.391 8,389 162.369 1.79 3.84 1880 43.063 68,508 136,010 8,128 159,480.7 1.61 3.7 1881 48,858 73,574 147.603 8,526 172,277.8 1.70 3.93 1883 44,669 77.569 156.654 7,025 180,986 1.74 4.05 1883 45.493 78,744 160,136 7,004 184,450.5 1.73 4.05 1884 46,333 81,858 165,761 7.083 191,022.7 1.76 4.13 1885 47,995 83.719 159.830 6.091 187.222.5 1.79 3.90 1886 48,335 85.629 154.300 11,893 189.010.5 1.76 3.91 1887 49,633 86,924 146.220 21.146 190.717.5 1.74 3.84 1888 50.903 84,569 139.961 26.851 188.160.7 1.65 3.69 1889 58,353 86,286 153.052 28.421 200,819.2 1.64 8.84 1890 53,686 88.844 177.653 80.894 228,042.5 1.64 4.15 1891 55,113 97.100 195.109 89.133 248,506 5 1.75 ' 4.50 1893 56.513 101,406 204,825 45,464 268.772.4 1.79 4.60 56 THE LIOUOR TRAFFIC. The late Mr. Thomas M. Wilson, of Bergen, gave in the Labour Prophetiox September, TS93, ^n interest- ing account of the operation of the company system in Christianssand, which is here reproduced. He says: " The first Norwegian controlling society was estab- lished in the town of Christianssand, and commenced to operate on January ist, 1872. The population of the town was 11,600, and the population of the rural district, which drew its supply of spirits from the town, was approximately 53,000. Both populations may be described as having been very intemperate. Only the urban population, of course, became directly subject to the society's control, while the rural population continued to have spirits in wholesale quantities des- patched into the country for home consumption as before, the society being unable to exercise control on that wholesale trade. In 1872 the entire wholesale consumption of spirits supplied by private wholesale traders was 78,897 litres, and by the society 10,263 litres: together, 89,160 litres. The total consumption of spirits in Christianssand and the rural district, whole- sale and retail, was, in 1872, 224,627 litres, while the corresponding consumption had fallen in 1892 to 133,806 litres, that is equal to a reduction of more than 40 per cent. In 1892 the consumption was unduly increased, in consequence of a very large influx of the roughest class of laborers, that followed upon the com- mencement of the construction of a railway and a con- flagration that destroyed half the town. If we com- pare the consumption of 1891 with that of 1872, and that is, under the circumstances, the truest guide, we find that the consumption in 1891 was 115,890 litres, or a reduction of a little more than 48 per cent. "The society's share capital is $11,110, but only half has been called up. The working capital is i THE SCANDINAVIAN SYSTEM. 57 therefore only $5,555, and was held in 1892 by 68 shareholders. The net profit on the capital employed was, in the first year's operations, $13,410, or close upon 342 per cent. "The number of municipal spirit licenses was fixed at eight. The society acquired the monopoly of them, but only exercised five, and have since reduced the number to four. It now has three ordinary spirit bars, and one shop for sale in bottles and wholesale quantities. " The reduction in consumption that followed on the introduction of control was immediately accompanied by beneficent results in relation to crime, poor relief, savings banks, increased consumption of current domestic necessaries, etc., which all indicated great advantages derived from control. Fcr instance, the annual average of criminal cases for the five preceding years was 71, and it fell at once to 47. The annual average of police offenses connected with drunkenness was, in the five preceding years, 97, and it at once fell to 56. Cases of picking the pockets of intoxicated persons, previously a common ofiense, entirely ceased. " At first the society kept its premises open for the full number of hours permitted by the licensing law — viz., from 8 A. M. till 10 P.M., that is, 14 hours. Now it only keeps them open for 9J hours — viz., 9 A. M. till noon, and 1.30 till 8 P. M. — the retail shop being closed at 7.30 P. M. "The Christianssand Society's bar sales, which in 1872 were 41,376 litres, had fallen in 1876 to 32,387 litres, although the total sales, which in 1872 were 224,627 litres, had risen in 1876 to 269,046 litres. The times had in that quinquennial period been very flour- ishing, especially in the rural districts. There was 5« THE LIOUOK TRAFFIC. abundance of employment at previously unknown high wages ; yet it is a striking and satisfactory circumstance to note that, in spite of the increased total consump- tion, the bar sales were greatly reduced, as it is the bar sales that afford the truest guide to the effects of control. "In the 21 years the society has operated it has earned net profits to the amount of $273,620.68, which have all gone, or will yet go, to support objects of public benefit and utility which are not statutory burdens on the local taxpayers. To show the nature of the objects of ' public benefit and utility,' I will name a few : Workmen's Union Evening School ; School of Cook- ery ; Board and Lodging for Diligent Board School Children during their Holidays in the Country ; Chris- tianssand School of Industry ; Christianssand Tech- nical School ; Boys' Industrial School ; Workmen's Union Library; Cathedral S'^hool Library and Museum; Board Schools Pupils' Library; Town's Library; numerous Abstinence Societies, Good Tem- plar Lodges, and Blue Ribbonmen Societies ; Sick Nurses' Institution; Magdalene Refuge; Discharged Female Prisoners' Homes ; Prisoners' Aid Society ; Public Sea Baths for Men ; Public Sea Baths for V/omen; Quay Laborers' Waiting Rooms; Work- men's Union Sick Fund ; Industrial Society for Needy Women ; Workmen's Union Asylum ; numerous Asy- lums for Children, and a host of other similar benefi- cial objects too numerous to detail here. " The burgomaster and the superintendent of police, and the British and American consuls in Christians- sand, have been good enough to favor me quite recently with their opinions in writing of what the local con- trolling society has effected, and they unanimously report that the operations of the society have unques- 1 THE SCANDINAVIAN SYSTEM. 59 \ tionably been of immense benefit in the promotion of temperance and sobriety in the locality. " Personally, I have known this town well for 34 years, and my experience quite coincides with that of the four gentlemen nafned." The Massachusetts Legislative Commission has pub- lished a table giving a resume oi' per capita consump- tion during the differen': years. It differs somewhat in the estimate of the number of persons within the area of the company's operations. Like Mr. Wilson, Mr. Koren attributes the sharp rise in bar drinking during 1892 mainly to the influx of laborers employed in rebuilding the town after the disastrous fire. Consumption of Liquor in Ciiristianssand, 1872-92. 1 ■ ^ a.2'0 u t- AT Sold by the Company 1 i^ AS at: 0J5 02 =* 1— 1 03 at: 6 Quarts. < Quarts. Quarts. Quarts. Quarts. Qts. 1872 31,897 42,874 97,498 10,635 81,753 232,760 7.29 1873 32,225 46,103 111,742 12,808 126,040 296,693 9.20 1874 32,405 41,314 127,187 6,075 152,110 326,686 10.08 1875 32,737 38,294 137.284 11,575 123,746 310,879 9.49 1876 32,998 33,560 128,871 6,768 109,589 278,789 8.44 1877 33,316 37,965 125,977 2,763 116,502 283,207 8.50 1878 33,501 40,849 109,046 2,227 45,452 197,424 5.89 1879 33,630 37,072 88,694 2,212 49,664 177,642 5.28 1880 33,894 38,354 86,168 1,020 38,064 163,609 4.82 1881 34,164 35,099 94,143 1,689 26,090 157,621 4.61 1882 34,471 21,826.1 100,167.8 2,870 2 36,877.8 161,241.9 4.67 1883 31,684 16,439 102,413.3 3,107.8 48,859.7 170,819.8 4.92 18S4 34,992 15,415 102,493.6 2,287.8 18,611.7 138,808.2 165,144.3 3.96 1885 35,214 16,578.6 97,859.9 1,192.0 49,513.8 4.68 1886 35,262 14,715.6 96,275.9 578.0 21,869.5 133,439 3.77 1887 35,316 13.134.8 88,157.3 681.6 20,757.8 122,731.5 3.47 1888 35,516 13.202.3 86,323.9 528.4 21,899.1 121,953.7 3.43 1889 35,721 13.626 1 87,317.2 305.6 12,652.9 113,961.8 3.19 1890 35,878 14,866.6 100,580.9 696.4 12.664.5 128,788.4 3.58 1891 36,178 18,220.7 98,049.1 253.6 5,937.6 122,461 3.38 1892 37,000i 23,265.5114,917.1 675.2 2,134.5 140,982.7 3.81 i it in J' 60 THE LIQUOR TRAF-'FIC. The number of licenses exploited furnishes in a measure a criterion of the companies' efforts to reduce temptation and to restrict consumption. When the system was inaugurated in 1871 the number of saloon licenses in existence in Norwegian towns and cities was 501 ; to-day but 227 are utilized. Companies have the legal right to use nearly the original number, but they refrain from doing so in the public interest. Expressed m the form of proportion to inh^bitantj, the reduction has been from i for 591 to i for 1413 persons. In the entire country district of Norway but 25 licenses for the sale of spirits remain — i to about 8000 people. Half of these are at the fishing stations in tiie north. Statistics for Sweden are not availtble far enough back to show the full measure of improvement. In 1880 there were 692 inhabitants to one license to sell spirits (both retail and bar licenses are included) ; in 1892 there was but one license to every 1073 people. In the country districts the respective ratios during the same period were i for 13,450 and i for 22,526 persons. Following are tables for Gothenburg, Stockholm and Bergen. They speak for themselves. ft !:! 1! THE SC.'XNDlN.Wl.AN SVSTKM. GOTHENBURG. Licenses Used and Popul.vtion Compared, from October l, 1805, to September 30, 1893. 6i 1 Retail 1 icenses Licenses used for eonsump- Retail licenses used transferred o wriie nier- chants'for tioii (J n the by the the sale of Years. Popula- tion of Gothen- premises. company. higher-Kiade spirits. burg. _ __.__ 0,000 ibi- ts. ■ 0.000 lin- ts. • 0,000 I bi- ts. a 3 ^1 ^ ^ 1> c " a 3 .-1 » e 1 'Z P^-" !2: W "A 0.- 1 865-06 45,750 23 5.0 1866-67 47,332 28 5.9 __ 1867-68 47,898 30 6.3 ... 1868-69 50,438 43 8.5 — — 1869-70 52,526 42 8.0 __^ 1870-71 53,822 43 8.0 — — 1871-72 55,110 42 7.6 — 1872-73 55,986 42 7.5 — . — .— : 873-74 56,909 41 7.2 — _ ,»-. 1874-75 58,307 35 6.0 7 1.2 13 2.2 1875-76 59,986 36 6.0 7 1.2 13 2.2 1876-77 61,505 38 6.2 7 1.1 13 2.1 1877-78 63,391 38 6.0 7 1.1 15 2.4 1878-79 65,697 40 6.1 7 1.1 16 2.4 1879-80 66,844 39 5.8 7 1.0 18 2.7 1880-81 68,477 40 5.8 7 1.0 17 2.5 1881-82 71,533 40 5.6 7 1.0 19 2.7 1882-83 72,555 40 5.5 7 1.0 22 3.0 1883-84 77.653 38 4.9 7 .9 23 3.0 1884-85 80.811 39 4.8 7 .9 23 2.8 1885-86 84,450 40 4.7 7 .8 22 2.6 1886-87 88,230 40 4.5 7 .8 23 2.6 1887-88 91.396 40 4.4 7 .8 23 2.5 1888-89 94,370 40 4.2 7 .7 23 2.4 1889-90 97,677 40 4.1 7 .7 23 2.4 1890-91 101,502 40 3.9 7 23 2.3 1891-92 104.215 40 3.8 7 .7 23 2.2 1892-93 106,350 40 3.8 7 .7 23 2.2 62 TIIK LIQUOR TK.\F!-MC. Since October i, 1868, the company lias held all the licenses for consumption on the premises, with the exception of four houses which have ancient and special privilege for serving superior liquors princi- pally, and from October i, 1874. all the retail licenses have been in the hands of the company. Licenses in Stockholm, 1880 to 1802. Bar -trade. Retail. 1 Licenses vised , > ,0 V 00 or be 3 C e2 m Vi u .u rJcicriHi's plT ^j rg, ^ 7 ^*- ^1 w 10,000 Inhubltunts. ^^Z. *:«- c a-a , Year. 1 5 c a O «8 o Ah t :,. O - of VI O 'fi fl <^2 > 2ii ^5 1— ■^ 1877.. 40,760 14 60 3.5 15.0 1878.. 41,512 14 60 .^— „„ ^ 1879.. 42.280 14 60 .— — ...^ 1880.. 43,062 13 60 _ «a^B 1881.. 43.858 13 60 — » ,_^ 1 1882.. 44,669 13 60 — 1883.. 45,493 13 58 2 — « 1884.. 46,332 13 57 3 — 1885.. 47 995 13 56 4 . 1886.. 48,335 13 56 4 — —^ 1887.. 49,623 13 56 4 — «. 1888.. 50,902 13 56 4 — 1889.. 52,252 13 56 4 — 1 1890.. 53.686 13 56 4 ., 1891.. 55.112 13 56 4 2.4 10.4 Entrance of the company upon the field of action has undoubtedly prevented the licenses granted to private individuals for the sale of wine and beer over the bar from keeping pace with the advance in popu- lation. In Christiania and in Christianssand, under the old regime, the ratio of saloon licenses to population was I to i8i6 and i to 1274. In 1892 the respective pro- portions were i to 5516 and i to 2566. Compare the figures for these five Scandinavian towns with cities of the same size in England and America and note the difference. 64 THI': I.IOUOK TKAII'IC. ■ i Only the merest tyro in statistical science would attempt to J4auj»;e the efficiency A' any method for con- troll inj^ the liquor traffic by the number of arrests for drunkenness. Especially will well-informed persons refrain from making international comparisons. Laws relating to drunkenness differ materially, and there is still greater variance of police {)ractice in dealing with offenders. In Sweden the law requires that a person showing signs of being fuddled shall be taken U{). Anglo-Saxon policy is based on the exhibition of utter helplessness or disorderly conduct. Regulations appor- tioning a part of the fines to police funds furnish an artificial incentive, while the progressive popular intol- erance of inebriety which, accompanies a reforming regime plays likewise a most important part. Pub- lished statistics of drunkenness are usually valueless, because they are rarely differentiated to show how many times the same person was arrested. Only such figures can indicate whether the actual number of per- sons drinking to excess is on the increase, or whether professional tipplers are simply indulging more freely. Furthermore, the area to which any system applies must be studied as a whole, and not individual districts alone. It is evident that, if there l)e "no-license" in the country, and " license " in the towns, the former s more jovial inhabitants will utilize occasional visits to the cities to drink to excess. Statistically, though not really, such offenses belong to the places where they are committed. Statistics of drunkenness in Nor^vay are not published for the kingdom as a whole. In Sweden the number of convictions declined from 6.7 per 1000 inhabitants in 1874 to 4.3 in 1891. The advance of prohibition in surrounding country districts has '11 1 1: StANDIN W IAN SVSri-.M. added to the l)iirden of larji»e cities, l)Ut the prime cause of increase, where such has taken place, is the uncontrolled consumption ol beer. All reliable author- ities a^ree in this estimate, and their opinions are confirmed by the statistics of beer drinkinj^^ Con- sumption of malt licjuors, which advanced in Sweden from 1 6 quarts i)er inhabitant in 1874 to 28.2 quarts in 1890, and in Norway from 16.9 quarts per inhabitant in 1 87 1 to 31.2 quarts in 1891, cannot have been with- out potent influence. Is decreased consumption of spirits, which are sold under strict reticulation, or increased consumption of beer which is dispensed without restrictions, in the nature of things more likely to account for drunkenness ? It sliould be remembered in this connection, in reply to the assc'*tion sometimes made that decreased con- sumption of topirits in Scandinavia is offset by the increased quantity of fermented drinks consumed, that the increase of the latter scarcely compares unfavorably with the same in Germany and France, but that in those countries under the private pruf.h system the £07iS7tmptio?i of spirits has 7iearly {in Gernmny^ or quite (in France') doubled, zvhile in Scandi7iavia under the Conipany system it has diminished one-half. In the United States, too, the beer consumption in the corresponding period has increased vastly more than in Scandinavia (from 20.2 quarts per capita in 1871 to 64.32 quarts in 1893), with an increase in spirit con- sumption concurrently. Returning again to the relation of drunkenness to the company system, the opinion of those in positions of admii: strative authority, where good opportunities exist for correct judgment, is that compared with pre- vious conditions, the effect of the existing r6gime has 66 THE I.IOUOR TRAFFIC. been to brin. Under the new 1« v this will be largely increased. In several localir' vs, partic- ularly in Norway, cordial co-operation exisu tetween agencies for the spread of teetotalism and the com- panies. 11. The attitude of the temperance party is particu- larly important. Were the companies not succeeding in their avowed aim and accomplishing successfully the huge task of restricting the evils of the traffic, total abstainers would become their most e-irnest opponents. On the contrary, while they do not desire the system as a permanency, it is equally true that all of the more intelligent abstainers regard it as a salutary agency of progressive reform. There are 30 total abstainers amongst the 238 members of the Lower House of the Swedish Parliament. These, with 40 others, have voted in favor of a prohibitory regime, but they have never officially clamored for the abolition of the exist- ing system. The leader of the prohibition party in the Lower House, and probably the most pronounced temperance man in Sweden, in a letter to me, made use I 70 llll'. ','<;'.()K 'I'RAI'l'lC. I 'I of these significant words : " As to my personal view of the results of the Gothenburg system, I will merely add that with all its defects, it is vastly preferable to free trade in liquors, or to the ordinary licensing sys- tem." Dr. Wieselgren, President of the Swedish Temperance Society, is the most doughty champion of the plan. In Norway, Mr. H. E. Berner, of Chris- tiania, is not only the best authority on the company system, but also one of its most ardent exponents. He is the authority for saying that '* a great mass of abstainers have vigorously united in supporting a proposition recently formulated by a royal commis- sion, which does not advocate abolishing the compa- nies, but would grant them a complete monoply of all sales of spirits." He also says that " the regulations of the companies must be regarded as having worked successfully, and contributed greatly to restrict drunk- enness, while the profits have generally been devoted to the promotion of enlightenment, morality, and proper social spirit." Much capital has been made out of the passage of a resolution at the annual session of the Norwegian Grand Lodge of Good Templars in 1893 which was unfavorable to the company system. The fact has since transpired that this slipped through without the full knowledge of the meeting, an.:' the committee on resolutions has since refused to acknowl- edge it. Mr, Lars O. Jensen, who is one of the most promi- nent members of the order, and at present Right Worthy Grand Templar for Norway, the representa- tive of the society to the recent International Alcoholic Congress at the Hague, and the editor for Norway of the " Internationale Monatschrift," thus writes (his letter is in my possession) concerning the maiier in question: !h rni: c(jmi'anv system. 77 *' This resolution is now, I think, j^enerally considered a mistake, even among the Oood Templars tlieniselves. An old temperance man who is very much opposed to the company system sent a letter to the meeting ask- ing it to adopt the said resolution, which it did. The resolution condemned the system in that it declared that it had failed to materially decrease the consump- '■inn of alcoholic liquors. This same old gentleman wrote to the annual meetings of the Norwegian Total Abstinence Society and the Blue Ribbon Army, but at these meetings no such resolution was carried. As to the attitude of the representative temperance men, I refer you to my paper read before the International Alcoholic Congress at the Hague in 1890. I do think that they almost unanimously favor the company system as against individual licensing, and in this very year (1894) they have done their utmost to have the company system more fully carried out through the law just passed by Parliament." Mr. Sven Aarres- tad, a member of the Norwegian Parliament and editor of the official organ of the Norwegian Total Abstinence Society, has also shown his good feeling by assisting Mr. Berner in passing the new amend- ments to the Norwegian law which will enable the companies to operate more effectively. The attitude of such influential spokesmen of the temperance parties of Sweden and Norway will be deemed by any rational man as fairly conclusive test-ni'-ny. It must not be supposed that total abstaintio are completely satisfied with the plan. They believe, however, that it is the best means of progressive advance, and their eftbrts are directed to reforms in matters of detail rather than to changing the principle. They believe that the educational influence of the regime will, in the 7« Tin: f.lorOK IKAI'I'IC. I ; course of time, make prohibition a possibility. Messrs. Berner and Aarrestad, particularly, are positive in their statements that the company system is not a hin- drance, but a help to ultimate prohibition. Mr. Herner writes, " This view seems also to be acknowledged by the Norwej^ian Total Abstinence Society with its 100,000 members, for at its great annual meeting at Christiania last August the warmest thanks were officially voted to Mr. Aarrestad and mysf^lf for having done our best in passing the new law to more fully carry out the company system." The present efforts of the Scandinavian temperance parties are directed particularly towards divorcing the sale of beer from that of all other merchandise, extending the company monopoly to cover fermented as well as spirituous bev- erages, and changing the law so that after a certain number of years it will be illegal to sell any drink con- taining more than 25 percent, of alcohol. 12, The highest police and administrative officials, as well as foreign and consular diplomatic reprefcentci- tives, have almost unanimously testified in favor of the company system. The former characterize the differ- ence between the individual licensing plan of previous years and the present regime as " the ciiffereace between night and day." The one noteworthy excep- tion to the favorable views of consular officers is found in the superficial and misleading report of Mr. T. Mitchell, the British Consul-General at Christiania. This report precipitated an event which speaks vol- umes for favorable public opinion in Norway. The press teemed with protests, and Mr. Berner was requested by the Norwegian Minister for Home Affairs to prepare an official answer, which was later trans- mitted to the British Foreign Office. Mr. Berner's TIIK COMI'AW s\.sri:M. 79 reply is coiiiplt.'te, and eltcctiially (lls})()ses of tlic ^ros-s misrepresentation ot facts whicli Mr. Mitcliell's rt port contained. The Minister for Home Atfairs liimself forwarded a letter of denial to Councillor U. M. Stevenson, of Glasgow, wliicii was published in the //«?/'«/(/ of that city under the date of April 25th 1893. No further notice, 1 think, nt-ed be accorded Mr. Mitchell's misleading report, except to remark that when a document is officially repudiated directly by one government and indirectly by another, in addi- tion to being protested against by the writer's resident compatriots, it is high time that all who prize fairness and uprightness in controversy should cease quoting it. 13. An undeniably strong evidence of the efficiency of the Scandinavian method of controlling the liquor traffic is, that no single community which has ev( r fried it has afterwards abandoned it. An attempt has been made by unfriendly critics to turn this argument into an admission that the system once introduced cannot be gotten rid of or replaced by anything better. This is a gross perversion of facts. The system remains because communities have found it such a vast improvement on the old individual licensing plan. Publicly expressed approval of leading temperance reformers, indeed of all intelligent classes, as has been already shown, amply proves our contention. It is certainly a open question whether local prohibition under a locai option system as we understand it would do better in any of the larger communities of Scandi- navia, given existing views and contemporary social conditions; but the tiew law of Norway — which for th^^ first time in Scandinavia gives adults over 25 years o( age, including women, the right to vote directly on the question of license — will soon answer the hypo- thetical objection raised. — a fact which is responsible for neglect of public interests in a few places, chiefly smaller towns. (d) Permitting the sale of beer and spirits on the same premises, .^nd in general allowing employees to reap pecuniary benefits from the former. (^) Permitting, even under existing restrictions, the sale of spirits on Sundays and holidays. 5. A drawback which rarely appears, but which fairness compels me to mention, is that in a few instances the question of profits has been made unde- niably conspicuous. These are indeed notable excep- tions to the well-nigh universal rule. Attention is called to their existence in order to make more appar- ent the contrast. The danger can be easily averted by arranging for a strong system of central supervi- sion. It is safe to say that the alertness of temperance sentiment in England and the United Stales would THE COMPANY SYSTEM. 8-. not permit of the smallest evil of this sort. A triennial referendum, as proposed in the i^.Iassachusetts bill, would keep every company up to its professions. Certain radical temperance reformers, not satisfied with evolutionary advance, express the fear that the company system may please too well and that it may become a permanency. Such people should re-read the fable of che dog- with a bone who saw his shadow in the stream. We have seen already that Messrs. Berner, Aarrestad and other temperance leaders regard the Scandinavian method as i.he precursor to something better still when society shall have been fitted to receive it.* So also do all well-informed persons, no matter of what shade of opinion, reject the notion that liquor-selling has been made more respect- able under the company regime. Individual testimony is peculiarly positive on this point, and besides, numer- ous evidences exist in support of the view. One alone need be cited, as in itself it is fairly conclusive. It refers to decline in the bar-trade. In Gothenburg the quantity of spirits sold over the bar in 1874 represented a consumption of 11.3 quarts per head of population ; in 1892 it was 5.1 quarts, considerably less than half. In Stockholm the appropriate figures are 14.61 quarts during the first year of the company's operations, and 6.49 quarts for 1892. In the Norwegian cities of Bergen and Christianssand the same phenomena are apparent. The record for the former in 1877 was 2.5 quarts per inhabitant ; in 1892 1.7 quarts. P'or the latter 1.34 quarts in 1872, and 0.63 quart twenty *See, in this connection, the Rev. D. N. Eeacli's account of an interview with Mr. IJerner in August, 1S94, given in an article, "The Norwegian System in its Home," in The Ne^u England Magazine for February, 1895. 84 Till': r.IOUOR TRAFFIC. years later. Returns from smaller towns in the two countries teach the same lesson. The late Mr. Thomas M. Wilson, whose 35 years of residence in Norway entitled him to speak authorita- tively, said, " No persons of the better class would dream of goin^^ into a company's bar, and the respect- able working class, desirous of maintaining their posi- tion, avoid them like poison. The fact that customers are subjected to control and may be refused supply at the discretion of the barkeeper, has stamped the com- pany's bars, in the opinion of all classes, as something of a reformatory nature, and they are avoided by all with any pretensions to respectability and self-respect." Dr. Wieselgren is equally positive, averring that when one meets with the assertion that the Scandinavian method has made liquor-drinking respectable, one may safely reply that " suci. has not been the case in Sweden and Norway : the possibility of it is to us an incomprehensible suggestion." The chief of the Good Templars of Norway, Mr. Lars O. Jensen, says: *' When the Gothenburg system was introduced it was feared that this system would throw an air of respect- ability about the drinking customs. This has not been so. On the contrary, it is regarded as a far greater shame to enter a company shop than to enter an ordinary drink-shop." Reduced drinking at the bar has not been accom- panied with increased consumption at home. The figures for retail sale show also a decline, though not in the iiAniC proportion. The pith ot the w hole matter resides here. In the present stag': of r.ocial developi/ent no system can be devised v^h,,'}; will conpletely eradicate the evils to which tlte d-'ink-tratific neces-sarily gives rise ; but rill-: COMPANY' s^'STI•:M. S: wherever spirits are allowed to be inanufactiired and sold, the Scandinavian method of control is the only practical one to adopt. The justice of this assertion is made clear by reference to the experience of the United States, which has been a peculiarly fertile field of experiinent. This experience I have fully related in the Forum for November, 1894, and its salient features are here reproduced. In seven American commonwealths what is known as prohibition is the prevailing form of control. This term indicates 'withdrawing the ri^ht to manufacture and sell spirituous and malt beverages from domiciled residents within the borders. In ihe sense in which it is incorporated in American practice, further regulation of individual conduct is not attempted. A man may buy liquor in another State and have k shij)ped to him, provided it is destined for his own [.rivaf^ use. StUl more, he may purchase it surreptitiously from a fellow-resident without rendering l.imself li.' ble to punishment. It is the manufacturer and the seller, not the consumer of drink, who are placed under the ban. Prohibition is now the law of seven States — ? aine, New Hampshire, Vermont, Iowa, Kansas, orth Dakota and South Dakota. Four of these— iaine, Kansas, and thetwo Dakotas — have prohibition amend- ments to their constitutions. Prohibition h - been enacted and afterward abandoned in Delaw;'' c Rhode Island, Massachusetts, Connecticut, Indiana, xt braska, New York, Illinois and Ohio. All the States in which prohi'/itory legislation obtains to-day are relatively sparsely populated. The largest urban community in any of them is the citv of Des Moines, Iowa, which contains 50,093 people, a. ^Jrding to the last census. But it is in large cities where the S6 TFIE LIOUOR TRAFFIC. liquor traffic is hardest to control. Therefore it seems perfectly fair to make answer to the friends of- prohibition, that the soundness of their views has not been rendered sufficiently apparent from practical experiments. Massachusetts, Rhode Island, New York, Illinois and Ohio are States containing- large city popu- lations, and these have abandoned legal prohibition. The chief difficulty with all Restrictive measures directed against social vices is to secure their enforce- ment — or, indeed, their moderate obj^ervance — in urban centres. People should take account of this, remembering that virtue can never be inculcated by legal enactment. Its springs are in the human heart, and before they will flow they must be struck with the rod of a quickened intelligence. Marching too far in advance of public sentiment always renders success problematical. Depositing the ballot is too often accompanied on our part by a thrill of satisfaction that duty has been done, whereas it should be understood as having been only just begun. We should reflect that a majority vote for prohibition establishes a new legal misdemeanor, and that unless there is hearty and effective co-operation to secure enforcement, dam- age is more likely to be done than good accomplished. Disrespect for law is the most dangerous of all things under a democratic form of government ; and those who assist in making laws which for one reason or another cannot be enforced, assume weighty respon- sibilities. The control of the liquor traffic is a moral and social question and has no place in the arena of politics. It is greatly to be feared that making prohibition a political issue has compelled the liquor interests to seek political means of defense. But whatever the THE COMPAXV SYSTEM. 87 cause, the result has been an alhance with the domi- nant party, or tlie lower elements of both political parties, which has dej^^raded American politics to the lowest depths,. Another favorite American method TFlr. T.IQUOR TRAFFIC. be reached. Countries are jjroanin^ under the liquor curse. Does it not behoove all well-disposed people to cast aside prejudice in order to ^ain substantial betterment? Let not the attitude of abstainers in relation to controlling^ the " unholy thin^ " any longer savor of the conduct of the priest and tht Levite — passinc^ by on the other side. It is no part of m> present purpose to find fault. I wish only to appeal. This volume has been written in the hope of contributing^ to public enlightenment, and so furthering the laudable ends which the Bishop of Chester and his distinguished associates have in view for England ; and likewise in the hope that aid might be given similar workers in Massachusetts, whose public- spirited undertaking will accomplish great good not only for their own State, but also for the whole country. Personally, I believe profoundly in the sys- tem, because it operates educationally, and not solely by force of law. I grant it is not an ideal to those who look upon every sort of alcoholic drinking as unfortu- nate or wrong, but it furnishes the surest path of progress. The true ideal is as far ueyond this system as it is beyond prohibition maintriined by police power : an ideal which cannot be attained until the moral nature of man shall have been so renovated that he will instinctively or rationally shun all resort to evil, and make wise use of everything with which he comes in contact. As a means of education towards so lofty a standard, the Scandinavian plan presents superior advantages. Powerful object-lessons awaken the intel- ligence and move the heart. Best of all, it offers a common meeting-ground where radical and conserva- tive exponents of temperance may join hands with simple wellwishers of the race, to advance momentous human interests. INDKX. Alcdholic content of spirits, lo, 55, 73- American experience, ^5-95. Audit of accounts, 38, 32. l:.ir-tra Christians'and, 63; Christi- ania, 63; Ciotlrenburg, 61; Stockholm, T.a ; Norway, 60; Sweden, 60; United States, 95. Reduction of, 16, 71-72. Licensing atithorities, 11. " periods, 15, Local option, 87. Man.ngers' salaries, 22, 23. Massachusetts — elTort to introduce Norwegian system, 100. Minors, Sale> to, 123, 73. 6, Mitchell, Report of Consul, 78. Monopoly of trade essential to suc- cess, 53. 102 INDEX. Norway — Capital stock of companies, 30. I)ecr';av;il congiunption of spir- its, 36-39. Net surplus profits, ao. Pauperism, 66-67, I'olitics and litiuor trafTur, 71, 86, 89. I'ricf lists, 16, Priviite profit, Eliiiiination of, 13,38, 39. 70' Profits, Amount of, ao, a8, 39. Profits, l^istrihiition of— Kinlatid, 33. Norway, 13,37-28, 67, 83. Sweden, 27-39, Prohibition, 11, 12, 85 87, Piohihitionisfs, 95, 9^-100. Public authorities and companies, 15-16, a6. Public opinion cfTectivc, 37. Rational reform, 96. Ueadinu rooms, 19. Ready-money payments, 17. Rc' rt-ation of the people, 69. •* Respertable" dr.nking, 83-84. Kcstaurants, 25. Retail trade, 10. ^3, 47, 53. 54. Kural districts, 11, 12, 38, 33. w. spir Saloons, Uses of, 68-69, Shares, 13-13. Shareholders, 13-15. South Carolina Dispensary La 89 93. Stockholm — Capital stock, 20, Compeiisatio' 31, 49-51. Decreased consumption of its, 49. Number of licenses, 63. Sales by company, 47, Surplus profits, 20, Sul)-licensiiiK, 21, 2a, 25, 36, 75, Sunday-clos'HK, 73. Sweden, Consumption of liquor in, 35-36. 'I'echniciil schools, 68. Temperance party , Attitude of, 75-78, 83. "The trade," Attitude of, '^g. Total abstinenre bodies, 40-41, 75-83. United Slates, Consumption of li()nor in, 94. Wholesale trade, 10, 81. Wine, Sale of, 10, 19, 80-81. Illf